[fullwidth background_color=”no” background_image=”” background_parallax=”fixed” enable_mobile=”no” parallax_speed=”0.3″ background_repeat=”no-repeat” background_position=”left top” video_url=”” video_aspect_ratio=”16:9″ video_webm=”” video_mp4=”” video_ogv=”” video_preview_image=”” overlay_color=”” overlay_opacity=”0.5″ video_mute=”yes” video_loop=”yes” fade=”no” border_size=”0px” border_color=”” border_style=”solid” padding_top=”0px” padding_bottom=”20px” padding_left=”0px” padding_right=”0px” hundred_percent=”no” equal_height_columns=”no” hide_on_mobile=”no” menu_anchor=”” class=”” id=””][title size=”2″ content_align=”left” style_type=”double dotted” sep_color=”” margin_top=”” margin_bottom=”20px” class=”” id=””]How is wine valued on the secondary market?[/title][fusion_text]
True market price is always determined by the buyer and never by the seller, unless the item in question is rare and desired by multiple buyers. Most wines typically fall in value by as much as 40% as soon as you have purchased them.
This amount of depreciation depends on the marketing hype surrounding the wine prior to and after release, how good the wine actually is, leading wine critic reviews (Robert Parker Jnr; Jancis Robison; Huon Hooke; Michael Fridjhon et al) and the quality pedigree or reputation amongst the wine drinking community.
A winery can only guess what the wine is worth when it is first released and it is usually a marketing decision, based on a number of factors including fixed costs, quantity produced and comparison to other wines of similar makeup and origin – that sets the final price you pay in the bottle shop or cellar door. Then over time, as the wine circulates and is opened, the wines reputation is solidified through wine shows, tasting panels, wine reviewers and social media forums.[/fusion_text][/fullwidth][title size=”2″ content_align=”left” style_type=”double solid” sep_color=”” margin_top=”” margin_bottom=”20px” class=”” id=””]The endowment effect[/title][fusion_text]Collectors are often confounded as to why their bottle is only valued at $65 when retailer XYZ has it available for $100. Put simply, a collector is not going to net the price he sees listed on Wine-Searcher. Any wine is only worth what someone will pay for it. That buyer may then mark it up and sell it, hence the higher price on Wine-Searcher! As sellers, collectors must understand that typically they are NOT going to get the full retail value on items. Coming to grips with this harsh reality is a battle with which all collectors must contend. Often they are the same people who, when looking to purchase, will go to the ends of the earth in search of “a deal.” I have come to understand it as the part of behavioral economics known as